Friday, September 9, 2011

Reauthorize and Revitalize: The Transportation Bill Needs More Than Just an Extension | Public Advocates: "Let me explain. There are two types of transportation expenses: capital costs and operations costs. Historically, transit agencies could spend federal dollars on either of these expenses, depending on their local transit needs. But in the 1990s, Congress imposed restrictions that limited the use of federal dollars to capital projects only, forbidding transit agencies from using such funds to operate their fleets. This change in law has led to a structural imbalance in funding. Communities can no longer afford to operate the expanded transit infrastructure they’ve built over the years."